The effect of customer relationship management on customer loyalty: Evidence from banking industry

Measuring customer satisfaction in banking industry plays essential role for increasing market share and profitability. In this paper, we present an empirical investigation to measure the effect of customer relationship management (CRM) on customer loyalty in Iranian banking industry. The study aims to understand whether implementation of a good CRM could increase the quality of services. The study designs a questionnaire in Likert scale and distributes it among 65 selected customers who do their banking activities with Bank Melli Iran in city of Semnan, Iran. Cronbach alpha has been calculated as 0.939, which is well above desirable level. Using t-student test, the study has determined that implementation of CRM could increase customer loyalty and quality of services.